China's finance minister on
Wednesday defended the
country's currency
interventions, saying it was
difficult to take a hands-off
approach when it came to the
yuan, given an unsteady
economy and abnormal capital
inflows.

Speaking on the
first day of annual high-level
talks between China and the
United States, Lou Jiwei said
Beijing also faced challenges
in managing hot money inflows
resulting from the winding
down of super-loose US
monetary policy.
The value of the yuan has
been a thorny issue in
bilateral ties between the
world's two biggest economies,
with US leaders saying that
China suppresses its currency
to boost its export sales.